Samsung promises 'strong investment' in Vietnam in next 3 years

By Hoang Thuy July 2, 2024 | 03:30 am PT

Vietnam Prime Minister Pham Minh Chinh (R) meets with Samsung chairman Lee Jae Yong in Seoul, South Korea on July 2, 2024. Photo by Nhat Bac

South Korean electronics giant Samsung has planned “strong investment” in Vietnam in the next three years to make the country its biggest display module producer globally, its chairman Lee Jae Yong has said.

"Vietnam’s success is Samsung’s success", he told Prime Minister Pham Minh Chinh in Seoul on Tuesday, adding that Samsung commits to journey with Vietnam in the long run.

In May the chairman told PM Chinh that Samsung would invest around $1 billion in Vietnam each year.

Chinh praised Samsung’s success in Vietnam and asked the company to diversify its supply chain in the country and make the country its strategic location for manufacturing and research.

He added that Vietnam’s is making policy changes to attract investors in the high-tech, semiconductor and AI sectors.

Vietnam is also making negotiations for new free trade agreements to expand its exports to the Middle East, South America and Africa, which will help distribute Samsung products to these markets.

The PM urged Samsung to increase the localization of manufacturing and allow Vietnamese firms to participate deeper in its supply chain.

He wants Samsung to provide high quality training of Vietnamese staff.

Lee said that 310 Vietnamese companies are now Samsung suppliers, and the number has surged 12 times from 2014.

Around 2,500 engineers and researchers are working at its research and development center in Hanoi, where Samsung is researching AI and 5G equipment.

Chinh added that in the near future he hopes to see a Vietnamese executive in Samsung Vietnam’s board.

Samsung is the biggest foreign direct investor in Vietnam with four factories in the country with a total investment of $2 billion to date.

Over 50% of its smartphones sold globally are made in Vietnam.

Prime Minister Pham Minh Chinh and his wife are on an official visit to South Korea from June 30 to July 3 at the invitation of South Korean Prime Minister Han Duck-soo and his spouse.